Shork Power Station Secures NIS 5.6 Billion in Financing

A consortium including Adaletek, Menora, and Keystone Infrastructure Fund has finalized financial closure for the construction of a new power station near the Shork desalination facility, a project aimed at bolstering electricity supply to the Gush Dan region. The group, which won the state tender for the station, will raise approximately NIS 5.6 billion for the project, with financing led by Mizrahi Tefahot Bank and Bank Leumi. The power station will be fueled by natural gas purchased from Energean and is slated to commence operations in November 2029.

The consortium secured the tender in December 2024 and later signed an agreement in late 2025 to purchase a power turbine from Siemens, a component experiencing global shortages due to unprecedented electricity demand. A gas supply agreement was also finalized with Energean, which operates the Karish gas field. The financial closure marks the final step before construction begins, enabling payments for the station's development.

The Shork power station will have a capacity of 870 megawatts, but will receive availability payments from the national grid for only 670 megawatts due to limitations in the national transmission network. These payments compensate for the station's readiness to operate, even when not actively generating power. The consortium offered the lowest bid in the tender for available hours, at 3.18 agorot per available kilowatt, translating to approximately NIS 21,000 per hour of availability, in addition to payment for actual electricity generated. This rate is lower than that offered by other stations like Kessam and Reindor.

To manage construction amidst geopolitical uncertainties, the developers, Adaletek and Keystone, will establish a dedicated partnership to build the station, acting as the main contractors. They will engage Issa Group as a subcontractor. This approach, combining local execution with international management expertise, aims to reduce reliance on foreign contractors and enhance resilience to operational and geopolitical challenges.

The natural gas for the station will be purchased from Energean for 15 years under a deal valued at approximately $1.4 billion. The power station itself will remain under the consortium's ownership for 24 years and 11 months after commencing operations, after which it will revert to state ownership. Oshrat David Deker, Deputy Accountant General, hailed the financial closure as a significant achievement, highlighting the state's capability to lead complex national infrastructure projects and the benefits of public-private partnerships. Yossi Dayan, Director General of the Ministry of Energy and Infrastructure, emphasized the station's role in strengthening Israel's energy security, particularly for the Gush Dan and central Israel areas, and its contribution to the electricity sector's resilience against growing demand.